Professional Skills Training for Experienced Members Conflicts of Interest July 2013

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 CONTENTS  The Institute and Faculty of Actuaries  Professional Skills Training (1 – 5)  Conflicts of Interest  Useful Resources July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 The Institute and Faculty of Actuaries The Institute and Faculty of Actuaries (IFoA):  has approximately 24,000 members, of which some 40% are based outside the United Kingdom.  is a self regulated professional body for actuaries, with regulatory oversight from the Financial Reporting Council (FRC), the UK’s independent financial regulator. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professional Skills Training (1) Why?  To protect the public interest and to promote public confidence in the work of actuaries. The IFoA’s Professional Skills Training has been developed to suit all members at various points in their careers and comprises 3 stages :  Stage 1 – Online Professional Awareness Test (OPAT)  Stage 2 – Professional Skills Course (PSC)  Stage 3 – Professional Skills for Experienced Members July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professional Skills Training (2) How?  By ensuring our members are competent, not only in the technical skills required of an actuary, but also that they have the requisite professional skills. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professional Skills Training (3) What?  Stage 3 - Professional Skills for Experienced Members: the IFoA requires experienced members to do two hours of verifiable Professional Skills Training each year.  The two hours of training can be acquired by viewing online content or attendance at events. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professional Skills Training (4) When?  The new annual requirement for experienced members is effective from 1July  The year is aligned with the CPD Year i.e. 1 July to 30 June, or for members who hold Practising Certificates from the IFoA; the year is aligned with their Certificate renewal. Members in scope for the purposes of the IFoA’s CPD Scheme may count the hours completed towards meeting their requirements under the Scheme. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professional Skills Training (5) Content  The IFoA has developed new interactive case study-based content designed to bring the Actuaries’ Code to life; illustrating challenges which can arise in your daily and/or professional life.  This will be delivered online via the IFoA’s website as well as at events.  The online content includes both generic and practice specific video clips, supported by learning and discussion points, and tools and tips to assist in identifying and managing conflicts.  The main theme for is conflicts of interest and the impartiality principle to reinforce the new regulation and guidance published in July July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (1) The IFoA published new guidance on conflicts in The guidance does not impose any new obligations upon you or your employer, but builds and elaborates on the provisions of the Code in relation to conflicts of interest and sets out the IFoA’s views of good practice in relation to conflicts of interest and how to manage those conflicts. It is designed to assist you in assessing whether a conflict exists and to determine what steps to take to manage the conflict appropriately. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (2) The guidance comprises: Conflicts of interest: a guide for actuariesConflicts of interest: a guide for actuaries, and Conflicts of interest: a note for pension scheme trustees In addition, new conflicts of interest provisions have been included in APS P1: Duties and responsibilities of pensions actuaries (APS P1) which was published in July 2012, and effective from 1 July APS P1: Duties and responsibilities of pensions actuaries July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (3) Specific requirements in sections 5 and 6 are imposed on Scheme Actuaries and others involved in pensions work in relation to the production and maintenance of a conflicts management plan, and of the specific restriction on the types of advice which may be provided to trustees and employers. APS L1: Duties and responsibilities of life actuariesAPS L1: Duties and responsibilities of life actuaries, (APS L1) also includes conflicts of interest provisions at section 7, which life actuaries should be aware of. With-Profits Actuaries and Actuarial Function Holders should also be aware of the rules on conflicts of interest in SUP 4.3 of the FCA Handbook. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (4) While there are no practice area specific conflicts of interest provisions for General Insurance, Enterprise Risk Management, Finance and Investment and Health and Care actuaries, they are reminded of their general obligations as regards conflicts of interest in the Actuaries’ Code. A further guide for employers of actuaries is being developed along with a ‘Conflicts Toolkit’ to help employers of actuaries run their own in- house Conflicts of Interest sessions and will be published in the second half of July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (5) The Actuaries’ Code states: Impartiality: members will not allow bias, conflict of interest, or the undue influence of others to override their professional judgement 3.1Members will ensure that their ability to provide objective advice to their clients is not, and cannot reasonably be seen to be, compromised. 3.2A conflict of interest arises if a member’s duty to act in the best interests of any client conflicts with: a)the member’s own interest; b)an interest of the member’s firm; or c)the interests of other clients July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (6) 3.3Members will take reasonable steps to ensure that they are aware of any relevant interest, including income, of their firm. 3.4Members will disqualify themselves from acting where there is a conflict of interest that cannot be reconciled. 3.5Members will document the steps they have taken to reconcile a conflict and will agree those steps with their clients if they would be effective without agreement. 3.6Before accepting any assignment members will consider carefully whether they should consult with any member who previously held such a position with the client, to establish whether there might be any professional reason why the assignment should be declined. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Conflicts of Interest (7) Client The term ‘client’ should be considered in a wide context, so that it includes not only your existing client (or recipient of your advice and/or services) but may also include for example:  former clients,  potential clients, and  those affected by your advice. July

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Useful Resources There are a variety of additional resource documents on the IFoA’s website which you may wish to be aware of and refer to as required. These are signposted on the Professional Skills pages and can be viewed via the onscreen buttons when working through the videos. July